Forex Trading: EURUSD Technical Analysis – May 06, 2019

The Euro (EUR) rose against the US Dollar (USD) on Wednesday, this caused an increase in the price of EURUSD, bringing it to more than 1.1100. The price of the pair increased after major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may remain bearish because the pair’s price marked a lower low in the recent downside move.

EUR/USD Technical Analysis

Currently, the pair is being traded around 1.1194, resistance can be seen around 1.1277, the 23.6% Fib level resistance level ahead of 1.1350, the trendline resistance and then comes 1.1463, the major horizontal resistance as shown in the given below chart.

EURUSD

 

Talking about the downside, a support can be seen around 1.1076, the trendline support ahead of 1.0600, the psychological number and then 1.334, the major horizontal support which is likely to prevent the price from decreasing further as demonstrated in the given above chart. The technical bias may remain bearish as long as 1.1285, the major horizontal resistance level remains intact.

The United States Labor Force Participation Rate

In the United States, the figure concerning labor force participation rate remained 63.0 in March, as compared to 63.2 during the month before, up beating the economist expectation which was 62.9. The data is copied from the news released by the Bureau of Labor Statistics Department of Labor, United States.

The data is derived after taking into account the age factor of labors including both working and those who are still looking for a job. It is presented in percentage of the total number of people either being employed or unemployed.  Generally speaking a high reading in this regard is considered as a bullish trend for the US Dollar (USD) and vice versa.

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, buying the EURUSD around current levels can be a good decision in short to medium term.

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